Case Law Details
PCIT VS Azure Retreat Pvt Ltd (Delhi High Court)
Delhi High Court held that disallowance of travel expenditure unjustified as the expenses incurred had a nexus with the business interest of the respondent/assessee and AO has not brought anything on record to prove that the expenditure were of personal nature.
Facts- AO while framing the assessment order u/s. 143(3) r.w.s. 153 and 153B of the Income Tax Act has made addition/ disallowance of 16,67,89,253/- u/s. 68 of the Act and travelling expense claimed by the respondent/assessee to the extent of Rs.8,30,748/- was disallowed. This amount constituted 70% of the travelling expenses claimed by the respondent/assessee.
CIT(A) allowed the appeal. ITAT dismissed the appeal filed by revenue. Being aggrieved, revenue preferred the present appeal.
Conclusion- With regard to addition u/s. 68 it is held that the onus, if at all, at this stage, in our view, shifted to the appellant/revenue. The appellant/revenue has not alluded to any material that would even faintly disclose that this was a case of round-tripping. Therefore, the deletion ordered by the CIT(A) which was confirmed by the Tribunal, was, in our view, the correct call, in the facts and circumstances obtaining in the case.
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